Strengthening Partnerships with Emerging Economies
The Federal Ministry for Economic Cooperation and Development (BMZ) has significantly enhanced its collaboration with the German business sector, particularly focusing on nine international growth markets, including Ghana, Kenya, Morocco, and South Africa. A year after the launch of the 'Economy and Development' action plan in October 2025, the ministry has released its initial assessment. German companies are now being integrated into development policy initiatives earlier, with the aim of improving their chances in international tenders. New financial instruments, economic delegations, and a joint funding platform with the Federal Ministry for Economic Affairs are designed to facilitate market entry and operational activities in partner countries.
Development Minister Reem Alabali Radovan introduced the action plan as part of a restructuring of Germany's development policy. This initiative seeks to more closely align development cooperation with Germany's economic interests while simultaneously fostering investments, job creation, and sustainable growth in partner countries. The first annual report documents new cooperation formats, funding instruments, and institutional agreements, although it does not provide specific figures regarding additional contracts awarded or private sector investments mobilized.
New Initiatives for Economic Collaboration
The BMZ has selected nine countries where collaboration with German businesses will be intensified. In addition to the four African nations—Ghana, Kenya, Morocco, and South Africa—the list includes India, Indonesia, Vietnam, Brazil, and Mexico. The selection process focuses on emerging economies that serve as both development partners for Germany and vital future markets for German enterprises.
A key innovation involves the preparation of bilateral government negotiations, allowing business representatives to be involved earlier in identifying and planning potential areas of collaboration. To this end, the BMZ has introduced 'Economic Days', which provide opportunities for companies, business associations, and government representatives to discuss investment conditions, market opportunities, and existing obstacles. Events of this nature have already taken place with Ghana, Kenya, and South Africa, and recently, an Economic Day for Morocco was well-received in Berlin. This format has also been implemented outside of Africa, including with Brazil.
In July 2026, the BMZ and the Federal Ministry for Economic Affairs, led by Parliamentary State Secretary Bärbel Kofler, agreed on an eleven-point plan aimed at giving German and European companies better opportunities in tenders for financial development cooperation. This plan emphasizes the early involvement of economic actors in project development, enabling ministries to identify economic sectors with particular participation opportunities for German firms. Additionally, the BMZ aims to counteract competitive distortions caused by international firms benefiting from state subsidies.
Furthermore, the BMZ has established a new instrument to mobilize private capital. In June 2026, SCALED Development was launched, which stands for 'Scaling Capital for Sustainable Development'. Its goal is to facilitate private investments in developing and emerging countries on a larger scale. Germany and Canada are participating as public shareholders, alongside private sector contributors such as Allianz and Zurich Insurance Group. This model aims to leverage both public and private capital to finance investments in partner countries, particularly for projects that may be less attractive to private investors due to their risks or financing conditions.
In addition to promoting larger commercial transactions, the BMZ seeks to enhance financing for smaller trade deals. The Deutsche Investitions- und Entwicklungsgesellschaft (DEG) has introduced a new guarantee instrument called 'TradeConnect', aimed at smaller exports and imports that face a lack of financing options despite existing demand. These guarantees will facilitate banks and other financing partners in securing such transactions. While this instrument is not limited to Africa, it could prove valuable for companies looking to establish or expand trade relationships with African growth markets.
To simplify access to existing programs, the ministries have consolidated their support offerings into a joint platform called 'Förderlotse Wachstumsmärkte', which provides information on consulting, funding programs, and financing options related to development cooperation and German foreign trade promotion. This initiative allows companies to have a centralized point of contact rather than having to research support options through various authorities and institutions individually.
Moreover, participation in European investment programs is receiving increased support. In February 2026, the German government established a point of contact for the 'Global Gateway Investment Hub', a European Commission platform designed to uncover investment opportunities for European companies in partner countries. Global Gateway represents the European investment strategy for infrastructure, energy, transport, digitalization, and other economic development areas.
The ministry also sees additional business opportunities with international development banks. Together with the World Bank and the Asian Development Bank, the BMZ organized a series of events to better inform German companies about tenders and participation opportunities. International development banks finance numerous infrastructure and economic projects that private companies can partake in, particularly in expanding energy supply, water infrastructure, transport systems, and industrial facilities.
Finally, the ministry's travel diplomacy reflects the growing involvement of the private sector. In August 2026, Minister Alabali Radovan visited Indonesia with a significant business delegation to explore new cooperation opportunities, especially in renewable energy. Other BMZ leadership members also accompanied business delegations to explore economic participation opportunities in countries like Syria and Ukraine. These trips are designed to merge development policy discussions with the exploration of economic cooperation possibilities for German companies.
Moreover, the BMZ is increasingly aligning bilateral vocational training initiatives to create opportunities for German companies to acquire qualified personnel from partner countries. In March 2026, the 'WE-Fair' Skilled Workers Alliance was established in collaboration with the German economy, aiming to merge state expertise with entrepreneurial experience in the field of fair skilled labor acquisition. This initiative seeks to consider the interests of German employers alongside the perspectives of skilled workers and their countries of origin, ultimately aiming for better employment opportunities, knowledge transfer, and economic stimuli in partner nations.
The action plan outlines three central changes: early involvement of the economy, reduction of structural barriers, and more targeted support for entrepreneurial activities. After twelve months, the BMZ has initiated measures in all three areas, including Economic Days in selected partner countries, the eleven-point plan for procurement policy, the investment company SCALED Development, the TradeConnect guarantee instrument, and the joint funding platform of the two ministries. In addition, initiatives for skilled labor acquisition and increased participation of German companies in international development projects have been launched. However, the annual assessment predominantly describes the establishment of new structures and the introduction of new instruments, without specifying the number of additional contracts awarded to German companies, the investment sums already mobilized, or the economic impacts in the nine focus countries.
As reported by fokus-afrika.de.
